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Important Update: Court Decision on EEO-1 Compensation Data

On Thursday, April 25, the U.S. District Court for the District of Columbia ruled that covered employers will be required for the first time to submit detailed data on employee compensation and hours worked (or “Component-2” data) to the Equal Employment Opportunity Commission as apart of their annual EEO-1 form submission by Sep. 30, 2019. The court ordered EEOC to collect this data for calendar year 2018.

ABC was involved in efforts to reverse the court’s March decision or, at minimum, extend the time period for employers to comply with any new Component 2 pay data requirement. While the new order extends the due date from May 31 to Sep. 30, there remain serious questions whether the court has overstepped its authority by ordering EEOC to collect the information at all. An appeal of the court’s decision remains a possibility.

In general, private employers with 100 employees or more that are subject to Title VII of the U.S. Civil Rights Act of 1964 are required to file Form EEO-1 (including both traditional “Component-1” data, which reports workforce demographics by job category, race, ethnicity, and gender, and now the new Component-2 data). Federal contractors that are otherwise required to file Form EEO-1 will only be required to file Component-2 data if they have 100 or more employees (covered federal contractors with 50-99 employees are required to file Component-1 only). Component-2 includes annual W-2 (box 1) compensation sorted by pay band and annual hours worked. For additional details, see ABC general counsel Littler Mendelson’s analysis.

The submission of Component-2 data was initiated during the Obama Administration. However, under the Trump administration, the Office of Management and Budget blocked the EEOC from requiring employers to submit any compensation data. In March 2019, the D.C. District Court ordered the OMB stay to be vacated.

Covered employers should be aware that Component-1 data is still due byMay 31, 2019.

The EEOC is expected to notify employers that they will collecting Component-2 data for calendar year 2018, which is due by September 30, 2019. See the latest on the EEOC’s website. As noted above, it is possible that an appeal will be filed from the court’s ruling.

If you have any questions regarding the recent court decision, feel free to reach out to me or Karen Livingston (livingston@abc.org).